Are you ready for a workplace revolution? Many think one is on the way, fueled by AI, flexibility, and human-centric values. Automation will take the reins on rote tasks, freeing your staff to be more creative and innovative.

Larger corporations now insist on a return to the workplace, and small businesses can gain an advantage in the battle to attract (and retain) skilled workers by offering flexible and remote work options.

Today’s employees expect your company to bridge the gap between sharing a workspace and easy collaboration. They expect you to provide them with the proper tools to do their jobs and also demand that your humanity guide your leadership. They want their bosses to possess empathy and emotional intelligence, see beyond the spreadsheet, and champion well-being.

In this article, I spoke to business leaders and experts to find out how small businesses are reshaping the future of work.

Workplace and hiring predictions for 2024

Small businesses will embrace generative AI to win the talent competition.

“Small businesses attract employees who strongly believe in what they do, with most believing in the company’s mission—it’s like a family. However, as artificial intelligence and generative AI become more available in enterprise workplaces, small businesses will have to compete [harder] for talent.

“In 2024, the talent competition will center around who can give employees the tools they need to do their jobs with the least friction. No one wants to spend time on data entry or manually filing an expense report. Employees need the tools to make their jobs easier, especially since it’s not generative AI that will steal jobs, but employees who are skilled in generative AI.

“Small businesses will face this challenge in 2024, and I predict they’ll rise to the challenge. There are many paths to generative AI workplace tools, and small businesses will get crafty in procuring the solutions for their workforce.”

—Ryan Demaray, Global Head of Sales SMB, SAP Concur

2024 hiring trends

“Every data point [in 2023] seemed to come with a counterpoint: September job numbers were up. October numbers were down. Quiet hiring is on the rise. Quiet quitting surges.

“Here’s what I know for sure after pulling apart market predictions, platform data, and analyst research:

• Hiring remains strong overall, but as always, industry is one of the most predictive indicators.
• Persistent job vacancies have customers leaning into scalable assessments at unprecedented rates.
• Potential is the new currency and its implications for fairness are remarkable.

“What we have learned and what we can expect to see going forward:

Traditional hiring processes are broken. Conventional ‘rearview recruiting’ relies on outdated practices where hiring decisions are made based on resumes and outdated job descriptions. Legacy HR tech compounds the issue by leaning heavily on resume screening and profile scraping. Focusing on what a person has done and not what they have the potential to do creates blind spots and hinders the identification of future talent needs. We know that looking at job history is inherently biased, especially for candidates with disabilities who are overlooked by traditional hiring practices. This traditional system further frustrates candidates with a soulless, manual, and opaque process that takes way too long, with little communication and no feedback.

Skills assessments are increasingly popular to identify potential and overcome talent shortages. Talent intelligence is shifting to focus on measuring what candidates can do instead of only measuring what they have done, and this is critically important.

AI’s inflection point and rising investment. There was a time when using machine learning and artificial intelligence made you an outlier in HR technology, but that’s no longer the case in a world of broad acceptance of AI and the proliferation of ChatGPT and other generative AI. The true way to stand apart is through a platform built on AI ethics, cutting-edge research, and rigorous engagement with regulators. As more vendors embrace AI, companies need to wade through the clutter created by an abundance of hiring technology. Clear answers to questions about fairness and regulation will be the deciding factor.

Flexibility is key. Incorporating hiring solutions that make hiring fairer for everyone is critical, and at the end of the day, flexibility is a key factor. Mobile-friendly and virtual solutions are an important way to show all your candidates you value them as people and understand that everyone has different needs. Invite candidates to complete assessments and on-demand interviews via text, and allow them to do both on their phones. Show you value them as humans first.

Companies are utilizing automation to boost candidate experiences. By automating the hiring process and leveraging technology, teams can expedite processes, make them fairer, and build processes around the candidate experience. Candidates today demand full transparency, convenience, and open communication. With a focus on increased retention and diversity, the talent acquisition team is leaning into science and AI to better support their goals. Automating more hiring improves workflows and provides better experiences for candidates.”

—Anthony A. Reynolds, CEO, HireVue

Small business owners are bullish about 2024

“This, despite the concerns about being overworked and the challenges of hiring staff. Burnout will continue through the new year. Optimization and organizational tools are crucial for small businesses to succeed.”

—Tami Cannizzaro, CMO, Thryv

2024 workplace trends

“90% of employees will return to the office. Working from home during the pandemic allowed millions of employees to experience a new work-life balance. In particular, employees discovered the joys of having the flexibility to determine where, when, and how they worked. Despite this resistance, 90% of companies expect their employees to return to the office by the end of 2024. The key to making this work will lie in how employers implement the transition. Superficial perks like free food or happy hours won’t cut it anymore. Rather, employers need to develop meaningful ways to reshape the work experience so workers feel there is a legitimate reason to be in the office.

“Having a best friend at work will be encouraged. In light of the Surgeon General’s report on the loneliness epidemic, supporting employees’ mental well-being will become even more critical. To tackle this problem, employers must recognize that cultivating and encouraging friendships at work is essential for people—and the bottom line. A report from Gallup found having best friends at work directly correlates with employee engagement and success, yet only two in 10 employees have a best friend at work. The report found that having a best friend at work not only motivates employees to look forward to going to work, but also directly impacts employee retention, productivity, and company culture.

“AI will transform the workplace, but its impact remains to be seen. Just like computers and the internet changed how companies do business, AI will usher in a new era of productivity. To avoid being left behind, companies must figure out how to leverage this emerging technology while simultaneously figuring out its limitations. While it’s still too early to say precisely how AI will change the workplace, employees will continue to remain the lynchpin for any successful business, so it will be critical that companies don’t abandon them on the promise of this new technology.

“Employee well-being will become a priority. Many CEOs have already begun to recognize that employee well-being is critical to the success of their companies, but whether they implement meaningful change remains to be seen. The first step to prioritizing employee well-being is to make it a shared responsibility. This year, more companies will begin to recognize that the over-reliance on individual responsibility and accountability cannot withstand the effects of structural barriers to well-being, such as work overload, toxicity in the workplace, and a lack of inclusion. The only way forward is together.

“Managers matter. To make workplace well-being a strategic priority, managers need to be empowered. The top-down approach and cookie-cutter benefit programs most companies have used over the past few decades will no longer cut it. Managers must lead by example and be given the tools to create a workplace that is safe, inclusive, and caring.”

—Laura Putnam, CEO and founder, Motion Infusion; author of Workplace Wellness That Works